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Uber gets another $200 mn for emerging markets push
by Staff Writers
Washington (AFP) Feb 12, 2016


Uber agrees to $28.5 mn settlement over safety claims
San Francisco (AFP) Feb 12, 2016 - Uber said Thursday it has agreed to pay $28.5 million to settle a pair of lawsuits challenging its promises on driver safety checks.

The settlement submitted for approval in US District Court in Northern California called for the ride-share company to divvy up the cash between some 25 million customers and to "avoid using certain language in safety-related advertising as well as the term Safe Ride Fee."

"No means of transportation can ever be 100 percent safe," Uber said in an online post.

"Accidents and incidents do happen. That's why it's important to ensure that the language we use to describe safety at Uber is clear and precise."

The civil litigation challenged Uber's claim that it used "industry leading practices" to check backgrounds of drivers. It also took issue with how it used money taken in by a "Safe Ride Fee" added on to trips.

Under terms of the proposed settlement, Uber will rename the charge a "Booking Fee" that it said will be used to cover safety and operational costs as needed.

"We are glad to put these cases behind us and we will continue to invest in new technology and great customer services so that we can help improve safety in the cities we serve," Uber said.

If approved, those represented in the class action suits will get a choice to have their shares of the settlement money paid to credit cards or Uber accounts.

They include people who took Uber rides in the United States between the start of 2013 to the last day of January this year, according to the San Francisco-based firm.

Global ridesharing service Uber said Friday it had raised $200 million in additional funding to help its push into emerging markets.

The latest round comes from Luxembourg-based investment group LetterOne (L1), according to a joint statement.

"Our goal is simple: reliable and affordable transportation everywhere, for everyone, at the push of a button," said Uber chief executive Travis Kalanick.

"L1's knowledge of emerging markets will be crucial in helping us make cities more accessible, opening up more possibilities for riders and more opportunities for drivers."

Mikhail Fridman, the Russian billionaire who is chairman of L1, said he was excited about the strategic partnership with Uber.

"As entrepreneurs, with experience in retail, banking, telecoms and energy sectors, and knowledge of diverse developed and emerging markets, we believe that Uber's highly talented management team possesses the necessary vision and skills to build the company into one of the world's preeminent technology businesses," said Fridman, whose group also holds stakes in telecom groups VimpelCom and Turkcell.

San Francisco-based Uber, which allows individuals to offer rides via a smartphone application, has expanded to hundreds of cities worldwide and more than 60 countries, drawing protests from the taxi industry and regulators.

The company has become one of the biggest venture-backed startups, with a valuation of more than $50 billion based on private investment disclosed to date, with some reports saying the valuation is over $60 billion.


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